From Reuters:
China on Monday announced a $20 billion capital injection into China Development Bank, one of the country’s three policy lenders, as part of a long-planned transformation of the state-owned company into a commercial bank.
The move is likely to result in a multi-billion dollar stock market listing of the bank, aimed at raising cash, sharpen its competitive edge, and aid its overseas expansion following its 2.2 billion euro ($3.2 billion) investment in British lender Barclays in July.
“The capital injection extends the reform pattern of other state banks. It also means that restructuring of CDB will speed up toward commercial operations,” said Yin Jianfeng of Finance Research Institute at the Chinese Academy of Social Science. [Full Text]
